In January 2011, Chan and fellow legislator Wong Yuk-man resigned from the League of Social Democrats over differences with the leadership over what stance to take towards the Democratic Party in the discussions over Hong Kong's political development. As two of the party's three legislators, the move left the party and the remaining legislator, Leung Kwok-hung ('Long Hair') in a difficult position. They also said that factional fighting within the party has become so hostile that it was beyond their ability to rectify the situation.[4]

With Wong, he went on to launch People Power, under which name he continues to sit in Legco.